Resignations and shareholder exits continue to wreck DFCU Bank, with the latest top executive to hand in his resignation letter being William Sekabembe, who has been the Chief Business & Executive Director since 2016.
Sources say Sekabembe tendered in his resignation letter some time back though he is waiting for the three month notice to expire before can officially move on. This was agreed as he signed his contract with employers.
Sekabembe, according to some sources could be heading to Kenya Commercial Bank (KCB) as Managing Director, even though other sources say he missed the chance in 2017 to replace Juma Kisaame, the current troubled Managing Director of DFCU Bank.
Kisaame’s contract was planned to end in 2017, but he was given more time, to align Crane Bank to DFCU operations. Sekabembe would then fully assume the top job but latest developments at DFCU Bank seem to have pushed Sekabembe away.
Sekabembe is said to have disagreed with DFCU’s purchase of Crane Bank, something that did not go well with other top managers who were in favour of the now controversial transaction that has ended in courts of law, following a suit filed by former shareholders of Crane Bank.
The last few weeks have seen Britain’s Commonwealth Development Corporation (CDC) Group Plc, the bank’s second majority shareholder seeking for buyers of its shares in DFCU Bank. Deepak Malik, the CEO of Arise B.V; DFCU’S majority shareholder with about 58 percent also resigned from the board without giving clear reasons personally.
However, DFCU says Malik chose to resign from the board, having been appointed CEO Arise B.V. and that the resignation is in fulfillment of the regulatory requirement that 50 percent of members of the board be residents in Uganda. The bank says rumours in the media are unfounded, and that the public should ignore them.
An insider in DFCU says the fight for profits and the controversial acquisition of Crane Bank are some of the reasons for the crisis at the bank. This website was told that some big shareholders are not sleeping over the suit filed by Crane bank shareholders who sued Bank of Uganda and DFCU.
Despite Elly Karuhanga, the board chairman describing the changes at DFCU Bank as normal, industry analysts say facts available paint a different picture- a bad one.
Insiders say DFCU Bank has no sufficient liquidity to lend to its clients. A source said recently managers requested BOU to lend them some cheap cash for this business but Bank of Uganda turned them down, instead advising them to borrow from other commercial banks. Analysts say that happens when the central bank is unable to lend to a commercial.
Sekabembe holds an MA, Economic Policy and Planning (2002-2004) from Makerere University. He started working at Standard Chartered Bank in 1999 as a Personal Banker. In July 2001, he joined Barclays Bank Uganda as a Prestige Banker where he rose through the ranks in nine years to become Head SME Banking in October 2008 and then was promoted to Head of Branch Distribution in December 2009.
In May 2010, he joined to Stanbic Bank Uganda as Head of Products. He joined DFCU Bank as Head Consumer Banking in May 2012. He became the Head, Corporate Banking before being promoted to Chief of Business & Executive Director in October 2016.
Sources say Sekabembe is likely to be replaced by Andrew Kabeera, the current Chief Operating Officer. Kabeera joined DFCU in May 2018 from Standard Chartered Bank Uganda. He was Head Corporate and Institutional Banking and Commercial Banking Operations.